County looks to close budget gap, proposes hires to reduce legal risk

Doña Ana County manager Julia Brown and Doña Ana County Commissioner Wayne Hancock speak together before the start of a court hearing in the restraining-order lawsuit between Doña Ana County Sheriff Enrique Vigil and County Commission at 3rd Judicial District Court on Tuesday.(Photo: Robin Zielinski / Sun-News)Buy Photo

LAS CRUCES - Doña Ana County commissioners spent much of Tuesday addressing an initial budget proposal that includes an $11.6 million spending gap for the fiscal year starting July 1.

During the discussion, commissioners expressed support for funding an internal auditor, a risk manager and a second assistant county manager — jobs that have existed on the books, but haven't been filled for years. They said the aim is to reduce the county's legal risk.

To start the work session, county staff presented an initial $158 million budget to commissioners — a 5 percent increase over the $150 million budget for the fiscal year that ends June 30. Commissioners had previously decided that for 2016-17, they wouldn't rely on reserves — essentially past years' savings — to run county government.

County Manager Julia Brown said that, leading up to the meeting, county staff had "struggled with the numbers" to close the shortfall, but hadn't yet been able to. They were hoping to get feedback from commissioners on how to address the budget, she said.

Commissioner Billy Garrett proposed that the commission consider dipping into reserves for a portion of the $11.6 million stemming from capital expenditures — $6.86 million in large purchases such as for software and sheriff's department vehicles — because those are one-time expenses. However, he said he thought the remainder — about $4.7 million — should be closed by county management.

Brown took issue with the characterization that all of the proposed capital expenditures were one-time in nature. For instance, she said, the county has a backlog to update the Doña Ana County Sheriff's Office fleet, mainly because purchases of patrol units were deferred for years. If those vehicles are purchased on a yearly replacement plan, then large backlogs don't develop, she said.

Commissioner Ben Rawson countered Brown, saying capital expenditures are one-time because it's up to the commission each year whether to fund them or not.

The spending gap stems from two of three main budget categories used by county staff to analyze the budget: "unrestricted" funds, dollars that have not been otherwise obligated to a use, and "designated" funds, set by commission policies. A third category, "restricted" funds, encompasses spending with legal restrictions on it, such as a grant or money required to repay bonds.

Marisol Richardson, county budget and research officer, told commissioner the county is facing a number of increased costs, including higher health insurance premiums, pay raises, and greater liability insurance expenses. Modest increases are expected in revenues.

Richardson said she eliminated the practice of applying a "sponge" to each department's budget, a set amount subtracted from departmental budgets in recent years to correct for departments' typically over-estimating their actual costs. "Everyone has a problem with the sponge, so I said, let's cut it," she said.

Commissioners agreed by the end of the meeting to support funding an assistant county manager position, an internal auditor and a risk manager in an attempt to reduce legal settlements and pay-outs. Last week, a $450,000 settlement with a former human resources employee who alleged she was discriminated against was announced. It came after a more than $1 million verdict against the county in mid-2015 and a more-than $250,000 verdict against the county in mid-2013 for personnel-related lawsuits.

Garrett said the county has fielded a lot of criticism over legal payouts, which are tied to administration. The added positions would reduce legal risk and address concerns by the public, he said. A second assistant county manager role would give more support to Brown.

"We're getting beat up consistently in (the area) of administration," he said. "We've got to make it really clear to the employees and the public that we're serious about this."

Rawson, who's always supported hiring a risk manager and internal auditor, said he'd back the proposal, though he didn't see as big a need for another assistant county manager.

Commissioners David Garcia and Leticia Duarte-Benavidez also backed funding the three positions.

Commission Chairman Wayne Hancock said funding the positions could save the county money in the long run by avoiding costly legal settlements and expenses.

"Clearly the risk manager is extremely important," he said.

As part of the budget, county staff proposed to trim the county's Cooperative Extension Service, which funds agents who offer expertise in areas such as gardening and livestock. Extension office staff said county funds leverage state and federal dollars for four extension agent positions, two support staff and office operations. Depending on the level of cuts the commission makes, if any, the office might have to cut an extension agent position, extension personnel told commissioners.

Diana Alba Soular may be reached at 575-541-5443, dalba@lcsun-news.com or @AlbaSoular on Twitter.